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SportsTranscript
00:00All right, now let's get to the topics we were planning on discussing today.
00:04FanDuel's parent company, Flutter, one of those basic companies that seems to still be on the rise here.
00:11I know that there's been a lot of stock market stuff being talked about here.
00:15Generally on this show, Sam, we really don't dive into that because everybody has an opinion on that.
00:20We certainly don't want to give out the wrong opinions on that.
00:22But that's a company that seems to have a good start to the year, despite all of the fears of everything else going on.
00:30Yeah, it's been a crazy environment lately.
00:33If you cover anything in the space, you know, whether you agree something's going to turn around, whether you agree it's not.
00:38But in the gaming space, they're saying a potential recession and this growing economic uncertainty that we have, it's putting pressure on everybody.
00:46But the experts on the stock market, the focus on gaming, are seeing it as an opportunity for companies like Flutter, which own FanDuel, companies like DraftKings as well.
00:56As the broader stock market takes a hit, I think this could be a good opportunity to buy in on what they're calling these best of class companies, saying that they're built to hold up better than most, even if the economy keeps sliding.
01:08And there's some pretty interesting things about the industry, some pretty unique things about gambling that maybe make it equipped better to handle a recession than other folks.
01:18Flutterstock's actually down 5% since April 2nd when these new U.S. tariffs were announced and kind of the whole stock market has taken a slide.
01:26But Stifel sees this short-term dip, actually has a good time to buy, saying that they have the strongest term outlook in the space.
01:33You know, sports betting is still growing.
01:35We just talked about a new state that could legalize.
01:37And even beyond sports betting, iGaming very much has the potential to be on the rise as well.
01:43It's only legal in about 17% of the country.
01:46Last time we had a potential recession, which was around the pandemic, states actually rapidly sped up their legalization of sports betting.
01:54More people were home, and betting actually went up.
01:57There's kind of a wild stat out there that historically, when the economy slides, when recessions happen, gambling actually goes up.
02:04People go to the casino more.
02:06Now people are spending on online sports betting apps more, online gaming apps more, could be more comfortable staying inside, betting on their small amounts on their phone.
02:16We've certainly seen, you know, sort of lottery tickets like parlays on the rise as well attract a lot of attention in the space.
02:23So the analysts are kind of saying maybe this could uniquely be good for the gaming industry.
02:29We'll have to see if more states, you know, get in a crunch with their budgets, whether it all comes to that point, whether they would then look at legalizing iGaming more in that sense.
02:38But so far, it seems like these stocks are still very much in good graces with the investing community.
02:45When you look at all the other aspects of the stock market, it's very much the opposite.
02:49So another kind of unique way that sports betting and these huge gaming companies that we talk about spending tons of money trying to be profitable could actually be benefiting from what's going on in this larger macroeconomic environment that has a lot of the rest of the investing community very shook up.